First-time buyers promised interest-free property loans in Abela housing plan
Labour unveiled its first set of proposals aiming to help people get on the property ladder
First-time property buyers will receive an interest-free loan for a quarter of the value of their property, with other incentives for families looking to move into a larger property, under a new set of proposals unveiled by Prime Minister Robert Abela on Tuesday.
Pressing on the theme of quality of life, an issue that Abela said would be at the heart of a new government, the proposals promise to support individuals throughout every step of their lifetime, from childhood to retirement.
“We will be with you at every step, to start your family, to open your business, to buy the house you want, to enjoy your retirement,” Abela said on Tuesday.
Describing the purchase of a first property as “one of life’s great challenges,” Abela said his new government would provide more financial support for people trying to get on the property ladder.
Dubbed ‘My First Home,’ the proposal pledges an interest-free loan of up to 25% of a property’s value, helping first-time buyers over the age of 23 cover the costs of their first property.
A single buyer earning under €40,000 will receive a loan on a property of a value up to €300,000. This rises to €350,000 for couples earning up to €60,000 between them.
Buyers will then be able to repay the loan later in life, until they reach the age of 65.
This means that, through this scheme, a single person will save up to €65,000 in interest while couples save €75,000, Abela said.
Abela admitted that those looking to move into a larger home often fell through the cracks of existing schemes, promising to address this anomaly.
Families with more than one child will receive the existing measures exempting first time-buyers from stamp duty, as well as those linked to urban conservation areas when selling their homes to buy a larger property.
Abela said these measures will give couples the equivalent of €25,700 when buying a property in Malta, while those buying in Gozo could receive up to €47,700.
Buyers who signed a promise-of-sale agreement after January 1 will be eligible to apply.